Walk me through how we would value a REIT (Real Estate Investment Trust) and how it differs from a “normal” company.
Similar to energy, real estate is asset-intensive and a company’s value depends on how much cash flow specific properties generate. – You look at Price / FFO (Funds From Operations) and Price / AFFO (Adjusted Funds From Operations), which add back Depreciation and subtract gains on property sales; NAV (Net Asset Value) is also important. …